Woes on Margins for Refiners

By

Jenny Gross And

Konstantin Rozhnov

Oct. 3, 2012 7:00 p.m. ET

Booming European oil-refinery profits, which have hit levels not seen since before the economic crisis of 2008, are unlikely to stave off an overdue and costly restructuring of a sector that faces overcapacity and outmoded facilities.

A string of shutdowns amid weak demand has lowered runs of fuels like gasoline and diesel. This shortage has...